CAPRIOTTI v. ROCKWELL

District Court, E.D. Pennsylvania·Decided November 19, 2020·No. 2:19-cv-03136·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

LUCIA CAPRIOTTI : CIVIL ACTION : v. : No. 19-3136 : RICHARD D. ROCKWELL, et al. :

MEMORANDUM Juan R. Sánchez, C.J. November 19, 2020

Plaintiff Lucia Capriotti brings this action alleging her boss, Defendant Richard D. Rockwell, asked her to commit perjury and after she refused, he, and the entities he represents, fired her. Defendants Rockwell, Professional Security Broadband, Inc. (PSB), Insperity, Inc., Insperity Holdings, Inc., and Insperity PEO Services, L.P. (collectively Insperity), move for summary judgment pursuant to Federal Rule of Civil Procedure 56. The Court will deny the motion in part and grant the motion in part. Because there is a genuine dispute as to the material fact of whether Rockwell asked Capriotti to commit perjury and fired her because she refused, the Court will deny the motion. However, because Capriotti has failed to produce evidence showing Rockwell acted on Insperity’s behalf or Insperity itself asked her to commit perjury, the Court will grant Defendants’ motion insofar as judgment will be entered in favor of Insperity only. FACTS1 PSB is a holding company for Unlimited Technology, Inc. PSB hired Capriotti as an at- will employee in 2014. Insperity, a human resources outsourcing company, entered into a Client

1 In determining whether to grant summary judgment, the court “must view the facts in the light most favorable to the non-moving party, and must make all reasonable inferences in that party’s favor.” Hugh v. Butler Cnty. Family YMCA, 418 F.3d 265, 267 (3d Cir. 2005). Except where noted, the facts herein are undisputed. Services Agreement with PSB in 2015 and became Capriotti’s co-employer.2 During the course of Capriotti’s employment, Rockwell served as the Chairman of PSB’s Board of Directors and the majority shareholder of PSB. Capriotti worked as the Vice President of Human Resources for PSB until Rockwell fired her on October 10, 2017. Unlimited’s best salesman Richard Leighton and his colleague Charlie Von Stetten had a

close relationship with Unlimited’s biggest customer, The Home Depot. See Capriotti Dep. 109:1– 13. In 2016, Leighton told Capriotti he intended to leave Unlimited to create his own company, DTS, and stated he believed he could get out of his non-compete agreement with Unlimited. See id. at 82:16–22. Capriotti also learned Leighton offered Von Stetten a job at DTS while they were both still employed by Unlimited. Id. at 113:7–12. Capriotti chose not to tell Rockwell about Leighton because Leighton and Rockwell had a contentious relationship. See id. at 83:11–20. Capriotti believed that, had she told Rockwell about Leighton, the relationship would have blown up and Leighton would have left the company. See id. Capriotti determined it was more beneficial to keep Leighton’s efforts quiet to avoid Unlimited losing the business with The Home Depot. See

id. In September 2016, Leighton left Unlimited. That same month, while still working for PSB, Capriotti helped Leighton apply for insurance for DTS. Capriotti used her own DTS email address and a laptop and cell phone Leighton provided her. See, e.g., id. at 50:15–22. Capriotti also received checks from Leighton to pay for certain items on DTS’s behalf. In 2017, Unlimited filed a lawsuit against Leighton because he created DTS while still employed with Unlimited and for usurping the business opportunity with The Home Depot.

2 Only Defendant Insperity PEO Services, L.P. is a party to the Client Services Agreement. See Pl.’s Ex. C, ECF No. 46-3. Rockwell believed Capriotti and Von Stetten helped Leighton create his new business. See Rockwell Dep. 49:11–51:11. On February 28, 2017, Rockwell, Unlimited’s CEO John Hopkins, PSB’s General Counsel Jeremy Reich, and Unlimited’s Vice President Brent Franklin held separate meetings with Von Stetten and Capriotti regarding the Leighton litigation. They first met with Von Stetten, who admitted his involvement with DTS and apologized. See id. at 57:7–8.

Rockwell, Hopkins, Reich, and Franklin then met with Capriotti and videotaped the discussion. In the meeting, Rockwell told Capriotti he discovered she had a DTS email address. See Capriotti Dep. 39:6–8. Capriotti told the executives the email address was no longer valid and it was only used to help Leighton get insurance for his new company. See id. at 39:16–19. She admitted her involvement with Leighton was a reflection of bad judgment. See id. at 64:15–19. Capriotti did not mention the cell phone, laptop, or checks she received from Leighton. Rockwell believed Capriotti was dishonest during the February 2017 meeting. See Rockwell Dep. 54:3–56:6. After Rockwell asked her what she thought he should do, Capriotti responded with “let me go.” Capriotti Dep. 65:15–24. Rockwell nonetheless retained Capriotti but

placed her on suspension after the meeting. See Rockwell Dep. 62:13–15. Later, in July 2017, Rockwell used his discretion to grant Capriotti a phantom equity agreement. See id. at 25:6–18. On September 28, 2017, PSB and Unlimited attorneys met with Capriotti to prepare her for a deposition in the Leighton lawsuit. See id. at 86:4–24. Rockwell spoke with Reich after the meeting and to Rockwell’s disappointment was informed Capriotti was “elusive . . . she wasn’t forthright about her knowledge, and that she continued to lie.” Id. at 89:15–19. That evening Rockwell called and spoke to Capriotti multiple times. See Capriotti Dep. 182:24–184:8. Rockwell screamed obscenities at her, repeatedly called her a liar, and told her she had to get the company out of the situation she put it in. See id. Capriotti testified, and Rockwell disputes, that he threatened to kill Capriotti’s grandchildren if she refused to help. See id. at 293:1–23. The next morning, Rockwell called Capriotti and asked her what she had “come up with” to fix the situation. See, e.g., id. at 166:15–169:20; 172:8–11; 179:3–15. Capriotti testified Rockwell told her to make sure whatever information she provided was damaging of Leighton.

See id. at 182:18–20. Capriotti also testified Rockwell wanted to “bury Rick,” and “was going to throw him in jail,” and if she did not help, Rockwell would “bring her down.” Id. at 180:1–12. Rockwell never specifically gave Capriotti a lie to tell or asked her to lie under oath, but Capriotti perceived Rockwell’s conduct as pressure for her to perjure herself in her deposition for the Leighton litigation. She testified that considering the circumstances—being granted phantom equity shares prior to her scheduled deposition, and after continuing to tell the truth Rockwell berated and threatened her—she believed he wanted her to lie under oath in her deposition. See id. at 169:13–20. Capriotti then called Susan Manno, Insperity’s human resource specialist, and reported

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